What do you get when you combine Netflix, Craigslist, and Amazon? PlayInterchange.com. PlayInterchange is a new web service that allows users to buy and rent DVD’s and video games from each other.

I really like this idea for two reasons. First, by using a peer to peer format, prices for rentals should be pretty cheap because so many people will be competing against each other. Additionally, you don’t have to sign up for a monthly membership as you do in Netflix. You just pay for the rentals you want. However, like Netflix, there are no late fees.

Second, one can make some money from renting your videos out to others. It might not be a lot, but it’s something.

Sign up with PlayInterchange is free and transactions are $.50 each.

My concern, though, is how long before the movie and video game industry will use their legal clout and shut this thing down. I’m sure they’re not going to like this. Additionally, for this to work people will have to trust that renters will return the videos. I can see a lot of scammers paying $1 to rent Gears of War and keeping it. We’ll see how it turns out. Until then, enjoy some cheap movie rentals.